City Settles Its Suit on Illegal Hotels

New York City has reached a $1 million settlement with a firm it accused of operating illegal hotels, creating a restitution fund to help defrauded tourists.

Last year, the administration of Mayor Michael Bloomberg filed a lawsuit accusing Smart Apartments LLC and Toshi Inc., a related company that was dissolved, of operating illegal short-stay rooms in about 50 residential buildings in Manhattan and Brooklyn. The city considered the...